Deitz Corporation is projecting a cash balance of $33,390 in its December 31, 20

Question

Deitz Corporation is projecting a cash balance of $33,390 in its December 31, 2016, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2017 shows total collections of $205,905. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $47,859. Other information gathered for the first quarter of 2017 is sale of equipment $3,339; direct labor $77,910, manufacturing overhead $38,955, selling and administrative expenses $50,085; and purchase of securities $15,582. Deitz wants to maintain a balance of at least $27,825 cash at the end of each quarter. Prepare a cash budget for the first quarter. (Do not leave any answer field blank. Enter 0 for amounts.)

Explanation / Answer

Beginning cash balance 33390 Add:cash receipts during the year collection from receiables 205905 sale of equipment 3339 Total cash collections 209244 Total cash available for disbursement   [A] 242634 Less:cash disbursement Payment to suppliers 47859 labor cost 77910 Manufacturing overhead 38955 selling and administration 50085 Purchase of securities 15582 Total cash disbursement [B] 230391 Excess of cash over disbursement [A-B] 12243 Financing Borrowing    [27825- 12243] 15582 Repayment Ending cash balance 27825

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